Nike Inc. has announced it will sell off its Cole Haan and Umbro brands to focus more on Nike products and athletic gear that complements its namesake brand, Dow Jones Newswires reported.
“Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for NIKE Inc. to continue to drive sustainable, profitable growth for our shareholders,” Nike Chief Executive Mark Parker said in a statement, according to the Los Angeles Times.
Nike has two new lines to promote – FlyKnit lightweight shoes and Nike+ training software and gear – the Associated Press reported. The company is holding on to its Jordan, Converse and Hurley brands, which executives say complement Nike.
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Nike has owned leather shoe and accessory manufacturer Cole Haan since 1988 and British soccer gear company Umbro since 2008, Dow Jones Newswires reported.
Sterne Agee analyst Sam Poser told Dow Jones Newswires that narrowing the portfolio is a good move for Nike. "I think in this environment focus is key, regardless of who you are and how big you are," he said.
The company said it hoped to find buyers for Cole Haan and Umbro by the end of May 2013, which is also the end of its fiscal year, the LA Times reported.
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